Proposed Delaware City data center hits major setback from environmental regulators
News ClipWHYY·Delaware City, New Castle County, DE·2/5/2026
A proposed 1.2-gigawatt data center in Delaware City, Delaware has hit a major setback after the state's Department of Natural Resources and Environmental Control (DNREC) said the project's design is not permitted under the state's Coastal Zone Act. The agency cited concerns over the project's large number of diesel generators and a tank farm larger than 5 acres, which it said are not compatible with the state's environmental regulations. Environmentalists are calling the decision a "monumental win" for residents and the environment.
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Gov: Delaware Department of Natural Resources and Environmental Control (DNREC)
The Delaware Department of Natural Resources and Environmental Control has rejected a proposed 1.2-gigawatt data center in Delaware City, citing concerns that the project's use of backup diesel generators and a large tank farm would violate the state's Coastal Zone Act. The decision is seen as a "monumental win" for environmentalists, but the project's developer, Starwood Digital Ventures, said they remain committed to the project and will work with regulators to address the issues. The proposed facility would be unprecedented in scale, with 516 generators compared to the current limit of eight in the coastal zone.